China is grappling with an enormous debt crisis. Many cities and even whole regions are overwhelmed by financial obligations, pushing local government officials to negotiate debt repayment terms with Beijing. The mounting unpaid debts are putting local economies under strain, potentially stifling national economic growth. The “Financial Times” attributes the overwhelming debts of Chinese cities primarily to the real estate market crisis and the pandemic’s impact. Over the last decade, numerous construction projects were funded through debt, aimed at propelling local development. However, the COVID-19 crisis has left local governments struggling to continue their investments while still being responsible for earlier debts. Goldman Sachs estimates the debt of major Chinese regions at $13 billion, including public liabilities such as bonds. A failure to meet these repayments could have widespread economic consequences.
https://www.msn.com/en-us/money/markets/china-s-debt-crisis-deepens-as-hidden-obligations-surface/ar-BB1jEj9C